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Help to Buy ISA vs Lifetime ISA – should I make the switch?

If you're saving for your first home with a Help to Buy ISA, find out if switching to a Lifetime ISA might be a better option for you

Get a government bonus

Both Help to Buy and Lifetime ISAs both offer a 25% bonus on your savings when you use them to buy your first home – but there are some important differences between the two.

Help to Buy ISA

The Help to Buy ISA is closed to new applicants, but if you already have a Help to Buy ISA you can still put in up to £200 each month until November 2029.

You can save up to £12,000 in a Help to Buy ISA and get a 25% government bonus (up to £3,000) when you use the money to buy your first home. This bonus is paid when the house purchase has completed, which means you can't use the bonus for your deposit.

The property must be worth £250,000 or less if it's outside London, or up to £450,000 in London for you to get the 25% bonus.

You have to claim the government bonus by December 2030.

Lifetime ISA

You can still open a Lifetime ISA (LISA) if you are a UK resident aged between 18 and 39. You can pay into the account until you reach the age of 50.

With a LISA, you can save up to £4,000 each year and the government will add 25% of however much you put in (up to £1,000 a year). The bonus is applied monthly.

You have to use your LISA to buy your first home or to pay for your retirement at the age of 60. If you take your investments out for any other reason, you'll have to pay a 25% charge.

Unlike the Help to Buy ISA, you can use the bonus for your house deposit for a property worth £450,000 or less regardless of where it is in the UK.

It must be the first property you've bought and the Lifetime ISA has to be have been open for a year before you can use it.

Find out more about LISAs here: What is a Lifetime ISA?

You can't receive the government bonus on both

While you can have both a Lifetime ISA and a Help to Buy ISA, you can only receive a government bonus on one of them.

Things to consider if you're thinking of moving your savings from a Help to Buy ISA into a Lifetime ISA

  • The price of the property.
    If you're planning on buying a property worth more than £250,000 (outside of London) then you'll only be able to get the government bonus on a LISA. If you're buying in London, the limit on both is £450,000.
  • How much you want to save and how quickly.
    LISAs allow you to save up to £4,000 a year with no overall limit - but you can't pay any money in after you reach 50. With Help to Buy ISAs, you can save up to £12,000 in total over any time period. Bear in mind that you need to save at least £1,600 in your Help to Buy ISA to get the government bonus.
  • When you want to buy.
    You'll only get the bonus on a LISA if you keep your money invested for at least a year.
  • Whether you want to use the government bonus towards your deposit or not.
    With a Help to Buy ISA, you won't get the bonus until after you complete your house purchase, but with a LISA the bonus is added to your account each month you pay money in.
  • Your age.
    You have to be under 40 to open a Lifetime ISA and you won't be able to pay any money in after your reach 50.
  • How much risk you want to take with your money.
    Help to Buy ISAs are cash ISAs, meaning the money grows by earning interest like a current account. Lifetime ISAs, on the other hand, are available as either cash ISAs or stocks and shares ISAs. If you move your money from a Help to Buy ISA into a Stocks & Shares LISA, your savings will be invested in the stock market and while this could mean you end up with more money, there is also a risk the value could go down.

Annual LISA limits

It's worth bearing in mind that if you do move your savings to a LISA, you can only move up to £4,000 a year, minus any other Lifetime ISA contributions.


Lifetime ISA

Open or transfer to a OneFamily Stocks and Shares Lifetime ISA and get a 25% bonus to help you buy your first home.

Explore Lifetime ISA


A young couple moving into a new home

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